ssoomro

I received an email from my agent that contained a lot of useful information (about eGate for MM2H at the airport, passport loss/renewal etc). A key piece of information that caught my eye was phasing out (in fact eliminating) the Tax free car purchase incentive for MM2H holders.

Here is the to the official notice (http://www.treasury.gov.my/pdf/percu...MM2H_Final.pdf).

Is it me or the list of incentives for MM2H holders keep shrinking? i just received my MM2H and now I have about 3 months to apply for tax incentive to buy a car

ssoomro

well.. a bit disappointed, since I have not made a final decision where to live in Malaysia and i was hoping to catch the auto-vendor offers around Chinese new year/Eids... to make a buying decision

ssoomro

from reading the notice (I am not a lawyer...I only play it on TV...occasionally)...it appears that you can apply until Dec 31...could that mean as long as your application is ..accepted for processing...by Dec 31...not necessarily that its approved ...or you buy the car ...by end of the year.. a couple of (or more) months can be wrangled outta the situation

Davita

According to the application process the requirements are....
4) A copy of the purchase order under MM2H applicant’s name from the vehicle dealer;
5) Submission of chassis number and engine number of vehicle during application;
6) A copy of quotation, detailing the price, from the vehicle dealer;

Seems you ordinarily have to choose the car, dealer etc. before requesting the tax incentive. Which now has to be applied for before 31 Dec 2017.

Macsta

Yes this is disappointing news as it scuppers my plans but I am also trying to interpret the behind the scenes rationale.

Unless the Malaysian government are trying to wind down the MM2H programme surely they should be trying to enhance (or at least maintain) the benefits not diminish it.

It is a very abrupt change, previously they had extended the time to purchase from one to two years (from Jan 2017) and now with three months notice it is abolished.

More worryingly it is an example of how "they" can move the goalposts mid match.

The lesson I will learn from this is extreme caution in investing in Malaysia and have a Plan B as it seems "they" are all to ready to change given commitments with little notice.

SushiFan

Macsta, this is not the first time that "they" move the goalposts mid match. And without pre-notification. Be prepared for this to happen more often in Malaysia.

Macsta

Hi SushiFan, the other issue is that I have read previous regular contributors stating the car purchase was at least an opportunity to withdraw part of the FD and utilise for the vehicle purchase rather than keep it frozen with the banks.

I am not questioning the authorities right to change any of the programme as it is their country and MM2H's are guests, however if you have made a commitment (let us not forget the number of applicants who will be affected by this should be very minimal) then it should be honoured.

In this situation those who had their visa granted after Jan 2017 should be allowed to purchase within the given rules at that time (2 years from visa) and then cancel the opportunity to duty free purchase for new visas.

This principal should apply for any issue as it is seems logical and fair.

doggmeister

I have been reading a lot about purchasing cars and I thought it has been mentioned many times now that buying a brand new car through MM2H is really not a good investment since when it comes to sell you need to account for the tax as part of the sale? or something? and that its much cheaper to buy second hand car 1 - 2 years old than to buy a brand new car using mm2h, is this correct or incorrect info?

InVinoVeritas

And just to add more petrol to this particular fire, the following changes are "rumoured" to be under consideration:-

1. No more category of above 50 or below 50.
2. Liquid assets to show increase to RM 600,000 during application. Previously RM 500,000 for below 50 years old applicant; RM 350,000 for above 50 years old applicant.
3. Applicant age 60 and above no need to show monthly income.
4. Fixed deposit increase to RM 500,000. Previously RM 300,000 for below 50 years old; RM 150,000 for above 50 years old.
5. Participant allowed to withdraw RM 250,000 after 1 years with conditions.
6. Annual visa fee increase to RM 270. Previously RM 90
7. RM 1,000 application processing fee to pay to MM2H Department. Previously FOC.
8. RM 150 processing fee per transaction for immigration department. Previously FOC.
9. Tax free car revoked.
10. Spouse parents allowed to include.
11. Parents visa from extended to 12 months from previous 6 months.

doggmeister

thanks very helpful, a mix of good and bad i feel...at least not all bad

NeonHippy

Interesting set of increased charges and financial requirements. Much as I enjoy living in Malaysia and have no desire to move, it seems to me that before Malaysia starts to impose A list requirements it needs to become an A list country. Oh I forget, the caribean has been all but wiped out promoting Malaysia to the premier league.

Epicurious

Item #3 is interesting on the rumour list. Why would they waive the income requirement when most of the other changes are making it tougher to get MM2H?

InVinoVeritas

I also wondered about that. I would like to think that it is the result of careful consideration that as one gets older, one lives less on one's income and more on one's capital.

ssoomro

Interesting posts here.. I am in agreement with the notion that changes (especially that rescind or limit a benefit advertised) should not impact those who are already granted it ..in other words it will be reasonable to allow people who were granted MM2H while the benefit was on the books to avail it based on the terms they agreed on and apply the changes going forward.

The changes IVV suggests are a mixed bag. Leaves me wondering is there some coherent long term strategy/policy in play or just knee-jerk reaction to political/bureaucratic gastro-intestinal malfunction ? :P

InVinoVeritas

Ah, mixed metaphors aside, I wonder too.